1.Introduction Due to the influence of International Monetary Fund, the income tax law of Sri Lanka witnessed a near paradigm shift with the introduction of Inland Revenue Act No.24 of 2017 (new IRA) by repealing Inland Revenue Act No.10 of 2006 with effect from 1 April 2018. Unlike the Inland...

The tax regime in Sri Lanka historically imposes WHT on both domestic as well as cross border payments. WHT on domestic payments eases revenue collection (e.g.: PAYE) while WHT on cross border payments are adopted by most countries to ensure that the fair share of tax is retained in the...

An agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion between Sri Lanka and Oman was signed during the Second Meeting of the Sri Lanka-Oman Bilateral Consultations, held on August 15, 2018 in Colombo at senior officials’ level by the leaders of the respective delegations. The Sri Lankan...

Removal of withholding tax on G-Sec income effectively frees foreign investors paying any taxes New tax law proposes to remove 10% withholding tax on G-Secs but makes such income liable for income tax up to 24% This likely to result in sizeable leakage of tax revenue to govt. as G-Secs...

ECONOMYNEXT – Foreign investors in Sri Lanka’s rupee bonds may not have to pay taxes after April 2018, Deputy Central Bank Governor Nandalal Weerasinghe said, amid some uncertainty in markets how a new Inland Revenue law will be interpreted. Sri Lanka lifted a 10 percent withholding tax government bonds from...

In a sharp censure to those who charge that the present government has slapped the citizenry with the highest possible taxes while taking away the concessions, the country’s State Minister of Finance said Sri Lanka is a tax haven in comparison to most other economies in the region and beyond...

ECONOMYNEXT – Sri Lanka’s new tax law has provisions that more effectively block companies from trying to dodge taxes by using techniques like transfer pricing, an expert said. The Commissioner-General of Inland Revenue (CGIR) has been given the power to re-examine sch transactions if they are seen to have been...

ECONOMYNEXT – Sri Lanka will charge a 10 percent capital gains tax on investments other than listed shares, under a new inland revenue bill to be effective from April 2018. The principle residence of a person, which has been owned for more than three years and in which a person...

Sri Lankan companies that violate transfer pricing rules can be fined up to two percent of the total value of transactions between related parties in case of non-disclosure of any required information under the new tax law. The new law also provides for the Commissioner-General of Inland Revenue to impose...

The Financial Intelligence Unit (FIU) of Sri Lanka has entered into a Memorandum of Understanding with the Department of Inland Revenue to co-operate in the fight against money laundering and terrorist financing, including tax evasion. The agreement is to exchange information in order to facilitate investigations and prosecutions on money...

Foreigners will come under a coordinated databank just after arrival so they could be traced until checkout and tax evasion by any of them prevented, officials said. They said a databank having networking with relevant nodal points would be developed under the National Board of Revenue (NBR). The NBR recently...

The government has decided to form a taskforce involving government and private sector stakeholders to bring the tax-evading unauthorised foreigners under the tax radar. An inter-ministerial meeting has already been held recently to discuss about the formation a high-powered taskforce that will enhance monitoring on the unauthorised foreigners for realising...

LAHORE: Nearly 40% of Pakistan’s companies that provided IT services have moved their business to the United Arab Emirates, largely due to the 8% additional tax on revenues levied by the government in 2015-16, said Sajjad Syed, chief executive officer of Excellence Delivered (ExD) Private Limited . ExD outsources non-core...

An article in today’s edition of Sri Lanka’s Mirror newspaper draws attention to that island’s plans to develop an offshore financial centre in Colombo. According to the article the proposal is modelled on the Dubai International Financial Centre, a notorious centre for moneylaundering and illicit financial flows. Now this doesn’t...

David Cameron’s party reported fresh donations of £217,500 from Lycamobile weeks after BuzzFeed News revealed the telecoms giant’s “deeply suspicious” business practices. The Tories have accepted a fresh donation of £217,500 from Lycamobile in defiance of calls on the party to sever its ties with the controversial telecoms group. The...

On October 6, 2015 Poland and Sri Lanka concluded a new Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (Hereafter: the DTA). When entering into force this new DTA will replace the existing Double Taxation Agreement (stemming from 1980)...

The dramatic expansion of international trade and development of new business strategies due to globalisation, converted the world into a large global market. In connection with that, companies have been using complex networks of subsidiaries and branches (e.g. permanent establishments) in order to continue most of their operations. The Multinational...

(October 28, 2015, Colombo, Sri Lanka Guardian) “I and my family members have no secret accounts in Dubai banks,”said the Rajapaksa ‘Crown Prince’ Namal when the media published reports about a secret account in a Dubai bank of a son of a VVIP. The media reports stated that the Sri...

Bangladesh is set to sign an agreement with Bhutan to avoid double taxation to boost investments, trade and facilitate information exchange between the two Saarc nations, the National Board of Revenue said in a statement. A team led by NBR Chairman Md Nojibur Rahman is now in Thimpu to take...

Poland and Sri Lanka yesterday signed agreements for corporation in the tourism sector and for the avoidance of double taxation and prevention of fiscal evasion. The signing took place at the Foreign Affairs Ministry in Colombo yesterday. The visiting Deputy Foreign Minister of Poland Leszek Soczewica and the Acting Foreign...

(Seychelles News Agency) – France’s ambassador to Seychelles, Genevieve Iancu, left the Seychelles archipelago, situated in the Indian Ocean on Friday after a little over two years spent in the post. Seychelles and France have good bilateral relations and strong historical ties due to the presence of the first French...

On Tuesday, Indian Prime Minister Narendra Modi will embark on a tour of three of India’s island neighbors as part of a charm offensive intended at veering India’s neighbors away from China’s influence and to counter its ‘string of pearls’ strategy in the region. Modi will visit Seychelles, Mauritius and...

The Maldives’ biggest bank is opening a Shari’ah-compliant unit, a move the government sees aiding its goal of becoming South Asia’s offshore Islamic finance hub. Bank of Maldives Plc began offering retail deposits that comply with the religion’s ban on interest on 22 January to be followed by finance for...

This edition of the Tax-News monthly feature takes in noteworthy events in the international tax arena, including attempts to inject new life into the campaign for comprehensive tax reform in the United States, and developments in the areas of free trade, indirect taxation, BEPS and tax transparency and compliance. US...

Fiji has proposed a Double Taxation Avoidance Agreement with Sri Lanka. The Fijian Attorney-General and Minister for Finance, Aiyaz Sayed-Khaiyum, confirming this said a draft agreement will be sent to Sri Lanka to initiate the discussions. Mr Sayed-Khaiyum met with the Sri Lankan Minister for External Affairs Mangala Samaraweera this...

[HONG KONG] Asia could set another record for international bond issues in 2015 if Chinese companies continue to borrow offshore at the same voracious pace they did this year, while bankers expect a heavy redemption schedule and larger pipelines from India and Indonesia to lift activity. Barclays is forecasting volumes...

A collection of valid points of view 1.The Island Editorial says 2. Further Analysis by Nalliah Thayabharan 3 More observations by Christie 4. Some more observations by Nimal 5. A Possible Solution by NeelaMahaYoda The Island Editorial says; “Opposition presidential candidate Maithripala Sirisena claims that the government leaders’ corrupt deals...

Islamic Finance has garnered an increased interest in the last few years and has the potential to develop the capital markets of Sri Lanka and assist in the development of infrastructure along with encouraging foreign investment in the island state, according to an economist in Sri Lanka. In an interview...

Bank of Ceylon, the country’s prominent corporate and trade services provider with 75 years of experience in the banking and financial services industry, has achieved an unassailable position in providing exclusive corporate financial solutions for private and Government sector corporate entities. The vast asset base it possesses has enabled BOC...

Non-residents will only be able to purchase land in Sri Lanka through long lease agreements and purchases will be subject to payment of a land lease tax (LLT), under the Land (Restrictions on Alienation) Act, which was recently given parliamentary approval. In accordance with regulations which have been provisionally applied...

Mar 21, Colombo: Sri Lanka will sign a revised agreement with Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income, the government media unit said. The Cabinet of Ministers has granted approval for the President, in his capacity as the...